There are four golden opportunities agents and brokers can cash in on if you know what trends to pay attention to. We have done a little research and found that these four opportunities are becoming more and more profitable in the industry. So of course we want to share these with you so you can cash in!
1 – Investors are Your Best Friends
The National Association of Realtors has reported that investor purchases in 2011 increased 65% to 1.2 million bringing them up to represent 27% of all home sales. That’s over a quarter of home sales you can count on an investor to sign on the dotted line. With the younger generation having just graduated college, burdened with college loans and a challenging job market, the demand for rentals are high. And that means the investors will continue to purchase homes for rental properties or vacation investments. Stay close to this group, and maintain a good relationship!
2 – Add Rentals to Your Services
Speaking of rentals, high employment rates, tight credit requirements and low vacancy rates equal a “landlord’s market”. So, agents should take advantage of two opportunities here: one – add rentals to your resume by investing in some property management training. Two – as suggested, forge solid relationships with investors. They typically buy two properties per year versus the average home-buyer that purchases one property every seven years.
3- Carve out Your Niche
Prices are still falling in larger markets like Atlanta and Chicago, but in places like Miami, asking prices are up as there is a large population of global and cash investors. The opportunity here is to start promoting your niche as someone who specializes in working with foreign buyers. Consider translating your listings and website into several different languages to accommodate this group. Evaluate your local market and determine your specialty. Are you located in a large military town? Do you have a history of selling high-end, luxury properties? Are you the “go-to” agent for urban properties? Own it! Brand it as your speciality and tailor your marketing initiatives in that direction.
4- Sharpen Your Negotiation Skills
The Wall Street Journal and the California Association of Realtors (CAR) report that multiple offers are on the rise. In California, 80 percent of sales are from traditional sellers with equity versus foreclosure, short sales and other distressed properties. To boot, 35 percent of the traditional properties have resulted in an average of three offers offers per property! What can you do? Evaluate your market and if the amount of inventory has decreased, reach out to past sellers who have been waiting for things to improve. Brush up on your negotiating skills in anticipation of multiple contracts and more importantly, inform your buyers that the bottom of the market has passed.
Bottom line – buddy up to investors, get in the rental business, enhance your specialty and beef up your bargaining rhetoric.
Tell Homes.com how you’re taking advantage of recent market trends.